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Establishing Advantage from the Resources and Internal Activities of the Organisation

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Submitted By aaronmcg
Words 2237
Pages 9
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Establishing advantage from the Resources and Internal activities of the Organisation!

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Introduction! Organisations have been subject to a vast majority of strategic frameworks over the past few decades, most notably so the research-based view (RBV), which aims to understand organisational activities and their competitive strategies (Kraaijenbrink et al 2010). The focus of this report is to state how organisations achieve competitive advantage from the use of their resources and internal activities. The report will give a brief summary of the RBV paradigm, followed, the main base of the report will focus on how firms use their recourses, capabilities and competencies to achieve competitive advantage. Concluding comments will then be made further discussing the concept of RBV.!

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The RBV summary! The Ricardian1 perspective of the heterogeneity and immobility of competitive capability

producing and rent earning resources flows through the core of the RBV (Barney, 1991; Kraaijenbrink et al 2010). Organisations are seen to strive for above normal profit generation, in unmediated competition with other firms within the same market. It further views organisations as profit maximising entities, guided by rational managers operating in such markets that, to a point are predictable and moving towards equilibrium (Leiblein, 2003; Kraaijenbrink et al 2010). From this the RBV takes an inside-out approach to dealing with the competitive environment, focusing on the firms resources and internal capabilities, that can be bundled together to provide a firm with sustained competitive advantage (SCA) (Barney et al, 2001). Internal capabilities and resources therefore depict the strategic choices an organisation will make to achieve competitive advantage within its external environment. On occasion the the configuration of its internal capabilities will lead to new markets to…...

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